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The following table presents annual returns on TUV common stock and the S&P/TSX Composite Index
over a three-year period.
What is TUV's beta relative to the S&P/TSX Composite Index over this three-year period?
Suggested Answer: C
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12 comments · newest first
HE
Hershel
3 days ago
But what if it’s greater than 1?
CH
Cherry
8 days ago
Agreed, it shows less volatility than the index.
AL
Alexia
13 days ago
I think TUV's beta is between 0 and 1.
AL
Alfreda
18 days ago
I agree, TUV seems to move with the market, so probably exactly 1.
VA
Val
23 days ago
Wait, is it possible for beta to be less than 0?
LI
Linsey
29 days ago
Not so sure about that, could be greater than 1!
AN
Annamae
1 month ago
I think it's definitely between 0 and 1.
ST
Staci
1 month ago
TUV's returns were pretty stable compared to the index.
JI
Jimmie
1 month ago
I'm a bit confused about how to interpret the beta values; I feel like I need to review the definitions again before answering.
TI
Timmy
2 months ago
This reminds me of a practice question where we had to determine beta, and I think I got it right by comparing the stock's returns to the index.
PA
Pamella
2 months ago
I think if TUV's returns are less volatile than the index, its beta would be between 0 and 1, but I need to double-check the calculations.
NI
Nickie
2 months ago
I remember that beta measures the volatility of a stock compared to the market, but I'm not sure how to calculate it from the returns given.